For long, I thought that asset allocation combined with the right investment instruments can lead you to success in investing. There is no dearth of research to prove that asset allocation itself accounts for more than 90% of the returns of a portfolio. Once you realise this, the whole investing operation undergoes a change. It […]
5 questions for the smart investor
The basis of all learning lies in the Questions. If you are hungry for knowledge, the first thing you will have in your mind is a question. If you have kids at home, you would know what I mean. You are subjected to a constant barrage of questions on anything and everything. Kids are hungry to […]
Do fear and greed rule your mind and your money too?
Ajay Gupta (name changed) fell prey to greed. A distant relative approached him a few months ago with an existing investment opportunity. A guaranteed return of 3% per month or 36% per year. This offer was a difficult one to ignore, plus he trusted the person making it. He took it. Ajay worked with an […]
Will you generate behavioural alpha in 2019?
Now, that we are officially into the new year 2019, why not do something more important. Get sober! In my experience, an average investor is not sober. He has a terrible repulsion to numbers. Logical reasoning also sounds alien to him. In fact, he is always on the lookout for that shortcut, trick, tip or anything, […]
Slay your Ravanas – Greed and Fear
It is Vijayadashami. I wish to remind you of something from a few years ago. “Can you please suggest me some mutual funds which will give high returns over the time next 5 years?” “Please tell me mutual funds that can give me at least 30% returns.” There are several similar queries that I received […]
What would you have done different?
The market movements over the year 2018 have left many an investor in dilemma. The portfolio shows lower or slightly positive returns. Some are facing loss of capital too. The question is – did I make the right decisions? Samar started investing via SIP in Jan 2017. Of course, he picked the best performing funds, […]